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Russian Urals Crude Rises Above Price Cap

OIL

Russian Urals grade crude has risen to above $66/bbl from Western ports amid stable freight rates and narrowing discounts for March goes, traders told Reuters.

  • Urals prices have been rising since mid-January, according to Reuters calculations.
  • Urals cargoes loading from Russia's ports of Primorsk, Ust-Luga and Novorossiisk were priced at $66-67/bbl FOB on Thursday according to Reuters calculations.
  • Shipping costs to India from the main Baltic ports were around $8mn, while Urals oil differentials on a DES basis in Indian ports firmed to -3.5-4$/bbl from recent estimates of -5$/bbl, traders said.
  • Traders said that Brent prices would need to soften considerably further to push the Urals price back below $60/bbl.

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